on September 20, hanyu pharmaceutical (300199.SZ) issued the "announcement on signing major contracts for daily operation" (hereinafter referred to as the "major contract announcement"). on that day, the company's stock price jumped high and quickly gained a 20cm limit. The "Major Contract Announcement" shows that Hanyu Pharmaceutical and its wholly-owned subsidiary Hanyu Wuhan have signed major contracts for daily operations with overseas customers. According to the contract, the customer expects to purchase GLP-1 polypeptide bulk drugs with a cumulative amount of 30 million USD [ about 0.219 billion yuan (including tax)] from the company and Hanyu Wuhan, accounting for 31.11 of the company's total audited revenue and 244.23 of the bulk drug business in 2022.

Top Target GLP-1

And GLP-1 is the target of weight-loss drugs that have attracted much attention recently. Tianfeng International stated that GLP-1 is an incretin hormone that not only lowers blood sugar levels, but also helps control appetite and weight. According to several securities research reports, Lilly and Novo Nordisk are the two giants of GLP-1 target weight loss drugs. According to Guolian Securities, Simaglutide and Tilpotide are currently the two hottest weight loss products, namely Novo Nordisk and Lilly's star products, Simaglutide is a long-acting analog of GLP-1, and Tilpotide (Tirzepatide) is a drug that acts on both GIP and GLP-1.

According to Novo Nordisk's 2023 semi-annual report, sales of its weight-loss drug semaglutide injection Wegovy reached DKr 12.081 billion (US $1.8 billion), up more than 363 percent year-on-year. In the first half of 2023, Lilly's sales of tierpotide reached $1.548 billion, showing a sustained growth trend.

The recent diet drug concept "water seller" has performed better

according to flush information, when investors asked about the production of Hanyu pharmaceutical's weight-loss drug bulk drug, Hanyu pharmaceutical's reply included the us $30 million contract for GLP-1 polypeptide bulk drug. thus, it can be seen that this bulk drug may be used for customer weight-loss drug products. however, as of the time of publication, yinshi finance and economics could not get through to Hanyu pharmaceutical for many times, and the specific situation was not fully understood.

previously, hanyu pharmaceutical said on the interactive platform that in the layout of the company's polypeptide weight loss/hypoglycemic pipeline, liraglutide bulk drug has already received commercial batch orders from overseas pharmaceutical enterprises, and liraglutide preparation has entered the final review stage. Simaglutide bulk drug has been filed with DMF in the United States, and Simaglutide injection and oral preparation are under active preparation in the United States, on September 11, 2023, Simaglutide injection received the notice of acceptance of clinical trial registration application issued by the State Drug Administration. According to Southwest Securities Research, Liraglutide also belongs to the GLP-1 category. Based on the above situation, Hanyu Pharmaceuticals weight loss/sugar-lowering preparations, injections and other products have not yet been commercialized, the company from the GLP-1 target weight loss drugs to obtain dividends or mainly from the supply of raw materials.

Many of the-share weight-loss drug listed companies with the highest recent gains also have the role of "water sellers". Yinshi Finance and Economics has communicated with many of them as investors. kincai shengke (301509.SZ) said that it mainly provides intermediate services with SNAC, a small molecule absorption enhancer for oral preparations of simaglutide (Semaglutide), which is part of the composition of bulk drugs. the final customers are related pharmaceutical companies that produce weight-loss drugs overseas, including novo nordisk, but kincai has no plans to develop weight-loss drugs on its own.

Borui Pharmaceuticals (688166.SH) received the "Drug Clinical Trial Approval Notice" issued by the State Drug Administration, agreeing to BGM0504 injection to carry out clinical trials for weight loss and type 2 diabetes indications. In addition, the company said that there are still Somaglutide bulk drug (GLP-1 target) in the small-scale test stage, which is mainly used for weight loss and blood sugar reduction. It is not certain which product can be commercialized first. Generally speaking, the research and development cycle of bulk drug will be shorter than that of innovative drugs.

smart medicine (300149.SZ) is a CRO/CDMO enterprise, which mainly provides such services. the company has the ability of weight-loss drug CRO. the company has no intention of developing innovative weight-loss drugs by itself, but only provides some research and development services.

puli pharmaceutical (300630.SZ) said that the company has developed hypoglycemic and slimming bulk drug simegllutide , which is in the pilot stage. the company's business related to slimming drugs is mainly bulk drug, and there is no plan to independently develop related innovative drugs.

nuotai biology (688076.SH) said that the self-developed GLP-1 receptor agonist anti-diabetes and weight loss new drug SPN0103-009 injection has obtained the drug clinical trial approval notice in 2022, but the clinical trial has not yet started . The company also has singaglutide bulk drug , which is mainly used for weight-loss drugs. currently, it is mainly used for research and development or qualification declaration by customers. because the patents of relevant innovative drugs have not yet expired, it has not yet been used for commercial weight-loss drug products. After the expiration of relevant innovative drug patents, the company's bulk drug business may expand according to the degree of commercialization of weight-loss drugs produced by downstream pharmaceutical companies.

There are fewer GLP-1 innovative drugs (obesity indications) approved in China. In contrast, the relevant API and CRO companies may benefit more easily. Southwest Securities Research shows that according to Novo Nordisk's annual report, the demand for APIs for Smeglutide in 2021 is four times that of 2019. Southwest Securities believes that the rapid release of GLP-1RA drug terminal sales has driven the demand for corresponding APIs and intermediates, and upstream peptide synthesis, solid-phase synthesis carriers and solvent manufacturers, polypeptide CDMO and other links are expected to benefit.